House price inflation is still on the rise, according to new statistics from the Department of Communities & Local Government.

Figures released today show house prices rose by 1.6 per cent in August, causing annual house price inflation to rise to from six to 7.7 per cent.

Scotland saw the biggest rise at 12.86 per cent, while London was up 7.9 per cent.

It means the average house price is now £197,631.

House price inflation has been a major problem for both first-time buyers and home movers, with an increasing proportion of income being taken up with mortgage repayments as prices outstrip wages.

The rate of house price inflation has been expected to ease off by the end of the year.

Last week, Halifax chief economist Martin Ellis said: "We expect utility bills and higher interest rates to curb housing demand over the coming months, causing annual house price inflation to ease between now and the end of the year."

If a rise in house prices affects you and your current credit commitments, check your credit report and ensure you're up to date.




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